This archive report was first published on 28 September 2019.
Kenya's betting industry has been dealt a significant blow with the shutdown of two major firms, SportPesa and Betin, following a prolonged tax standoff with the government.
According to reports, the two firms, which control more than 60 percent of the market share in Kenya, have halted their operations and are set to send home thousands of their employees.
On September 28, 2019, SportPesa expressed its disappointment with the Kenyan legislature's decision to impose a 20 percent excise tax on all betting stakes, stating that the tax was based on a 'fundamental misunderstanding' of how revenue generation works in the bookmaker industry.
'The tax is based on a fundamental misunderstanding by the Rotich-led treasury of how revenue generation works in the bookmaker industry. This decision will have a damaging impact on both customers and treasury,' SportPesa said in a statement.
Meanwhile, Betin has sent a notice of termination to all its staff, citing financial constraints and the deterioration of profitability since July 2019.
With the shutdown of the two firms, more than 2,500 people who depend directly on the industry will be out of jobs in coming days, marking the first casualties of the government's crackdown on the sector.
